Under Armour, Inc., the renowned American sportswear brand, has witnessed better-than-expected sales in its third quarter ended 30 September.
Not surprising considering the huge stock up of brand’s comfy sportswear and sneakers over the last few months by the consumers!
The sales for the third quarter were US $ 1.4 billion – more than the analysts’ estimated US $ 1.2 billion.
Though apparel revenue fell slightly by 6 per cent, footwear and accessories saw revenue surge of 19 per cent and 23 per cent, respectively, during the quarter.
That’s something to smile for the retailer after two very poor quarters.
While the retailer’s direct-to-consumer revenue rose by 17 per cent to clock US $ 540 million – all thanks to extraordinary online sales – wholesale revenue expectedly slumped.
The wholesale revenue – hit due to poor footfall in stores – has now strengthened company’s intent to bring down 2,000 to 3,000 of its distribution points in North America.
In its outlook for the year, Under Armour said that sales could be down in the high teens, while the inventory may go up by around 10 per cent.
With offices in Houston, Hong Kong, London, Munich, Paris, Toronto and New York City amongst others, the sportswear retailer generated US $ 5.3 billion in 2019.